The company expanded its copper business through the acquisition of Inspiration Consolidated Copper and its dump-leach copper mine, smelter, SX-EW plant, and rod-making facility in Arizona on July 1/88. That purchase allowed Cyprus to control much of its own smelting and refining and about one half of it’s sulphide copper concentrates are being smelted at the renamed Cyprus Miami operation.
A long-term lease was acquired for the Twin Buttes copper mine in Arizona and high grade ore from there is being processed at Cyprus’ nearby Sierrita mill. It also acquired an inactive molybdenum mine near Tonopah, Nev., from ARCO in mid-1988 where operations resumed in October. The mine has a capacity of 15 million lb of molybdenum and six million lb of by- product copper. The company’s other primary molybdenum producer, Thompson Creek in Idaho, increased production to 14 million lb in 1988.
Two new gold mines were brought into production last year by its Cyprus Gold subsidiary and a third began production earlier this year. The company produced 101,000 oz gold in 1988 and sold 92,900 oz. A 49% interest was acquired in a Mexican silver mine late in the year which will impact on this year’s earnings.
Both new gold producers are located in Australia. Sheahan- Grants, located in New South Wales, generated about 8,500 oz to Cyprus’ account (25%) last year. The 37.5%-owned Selwyn mine in Queensland produced about 17,000 oz for Cyprus Gold.
Existing operations including the 26.5%-owned Gidgee mine in Western Australia produced 12,000 oz last year and the 100%-owned Copperstone mine in Western Arizona produced 63,000 oz. The 25%-owned Moline mine in Australia’s Northern Territory started up late last year and will contribute significantly to Cyprus Gold’s anticipated output of 160,000 oz this year
Cyprus also produces significant amounts of coal, specialty metals (lithium), and industrial minerals (talc, barite).
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